Denim apparel maker Levi Strauss & Co announced on Wednesday that its fiscal second-quarter revenue and net profit both surpassed market expectations. The company raised its full-year performance guidance and declared an increased dividend.

The company now anticipates full-year adjusted earnings per share to be between $1.46 and $1.52, up from its previous forecast range of $1.42 to $1.48. The new upper limit of $1.52 exceeds the market consensus estimate of $1.50 per share.

Levi Strauss & Co also revised its full-year sales forecast upward, now projecting sales growth of 7% to 7.5% compared to the prior range of 5.5% to 6.5%. According to LSEG data, this projected increase is higher than the previous analyst expectation of 6.6%. Chief Financial Officer Harmit Singh stated that approximately half of this growth is attributed to price increases, with the other half coming from higher unit sales volume.

For the second fiscal quarter ended May 31, the company reported a net profit of $87.3 million, or 22 cents per share. This compares to a net profit of $67 million, or 17 cents per share, in the same period last year.

Quarterly revenue reached $1.56 billion, representing an approximate 8% increase from the $1.45 billion reported a year earlier.

Despite the better-than-expected results, shares of Levi Strauss & Co declined more than 5% in after-hours trading on Wednesday.

Chief Executive Officer Michelle Gass noted that the company's core consumers have demonstrated strong resilience despite facing higher gasoline prices. She pointed out that about two-thirds of the sales growth this quarter came from increased sales volume, not just price hikes, which gave the company confidence to raise its guidance and dividend.

"Our demand remains healthy," Gass said. "We are seeing robust performance across our key consumer groups, with strong showings not only from our core Levi's brand but also from our iconic products and new, higher-end Blue Label line."